- Banking Stocks Shrink Equities by N37b
Losses in banking stocks, on Monday, led to the Nigerian equities market losing N37bn at the close of trading.
The market’s negative performance was largely attributed to losses in Stanbic IBTC Holdings Plc, Zenith Bank Plc, Ecobank Transnational Incorporated Plc and Access Bank Plc by 4.7 per cent, one per cent, three per cent and 0.6 per cent, respectively.
The Nigerian Stock Exchange market capitalisation dropped to N12.972tn from N13.009tn recorded last Friday while the All-Share Index declined by 31 basis points to close at 37,250.78 points.
Year-to-date return moderated to 38.6 per cent as activity level remained mixed as volume traded inched by 8.3 per cent higher to settle at 942.7 million units while value dipped by 5.2 per cent to close at N4.8bn.
Sector performance was mixed as three of the five major NSE indices closed in the green, one trended southwards and the other flat. The banking index emerged the lone loser, down by 0.6 per cent owing to price depreciation in Stanbic IBTC, ETI, Zenith Bank and Access Bank.
On the flip side, the consumer goods index led the gainers, up by 0.3 per cent due to upticks in Nigerian Breweries Plc, Dangote Sugar Refinery Plc and PZ Cussons Nigeria Plc by 0.9 per cent, 3.3 per cent and 3.4 per cent, accordingly.
The insurance index followed, up by 0.2 per cent on account of gains in Continental Reinsurance Plc and Law Union and Rock Insurance Plc which gained 2.9 per cent and 4.9 per cent, respectively.
Similarly, buying interest in Forte oil boosted the oil/gas index by 0.1 per cent as the firm’s share price gained 2.5 per cent while the industrial goods index closed the day flat.
“Following the negative market performance on Monday, we expect bargain hunting – especially in banking stocks – to buoy market performance in subsequent trading sessions,” analysts at Afrinvest Securities said in a post.
Investor sentiment softened as 18 stocks advanced against 34 decliners. The top performing stocks were Law Union and Rock Insurance, Nigerian Aviation Handling Company Plc and Dangote Flour Plc while the worst performers were Air Services and Logistics Plc, Portland Paints and Products Nigeria Plc and University Press Plc, which declined respectively by 4.9 per cent, 4.8 per cent and 4.7 per cent.
